NYSE:FRO: good value for what you're paying.

Last update: Jan 10, 2024

Uncover the potential of FRONTLINE PLC (NYSE:FRO) as our stock screener's choice for an undervalued stock. NYSE:FRO maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Examination for NYSE:FRO

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:FRO scores a 8 out of 10:

A Price/Earnings ratio of 6.98 indicates a rather cheap valuation of FRO.
Based on the Price/Earnings ratio, FRO is valued a bit cheaper than the industry average as 68.52% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FRO to the average of the S&P500 Index (25.84), we can say FRO is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.09, the valuation of FRO can be described as very reasonable.
67.13% of the companies in the same industry are more expensive than FRO, based on the Price/Forward Earnings ratio.
FRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.76.
75.00% of the companies in the same industry are more expensive than FRO, based on the Price/Free Cash Flow ratio.
FRO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FRO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FRO's earnings are expected to grow with 42.93% in the coming years.

Profitability Assessment of NYSE:FRO

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:FRO, the assigned 7 is noteworthy for profitability:

FRO has a Return On Assets of 16.89%. This is in the better half of the industry: FRO outperforms 76.39% of its industry peers.
FRO has a better Return On Equity (34.90%) than 75.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.36%, FRO is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
The 3 year average ROIC (6.14%) for FRO is below the current ROIC(16.36%), indicating increased profibility in the last year.
FRO has a Profit Margin of 40.53%. This is amongst the best in the industry. FRO outperforms 80.09% of its industry peers.
FRO's Profit Margin has improved in the last couple of years.
The Operating Margin of FRO (44.54%) is better than 76.39% of its industry peers.
In the last couple of years the Operating Margin of FRO has grown nicely.
FRO's Gross Margin has improved in the last couple of years.

Health Assessment of NYSE:FRO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:FRO has received a 5 out of 10:

With a decent Altman-Z score value of 2.48, FRO is doing good in the industry, outperforming 64.35% of the companies in the same industry.
FRO has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as FRO would need 3.04 years to pay back of all of its debts.
The Debt to FCF ratio of FRO (3.04) is better than 62.96% of its industry peers.
With a decent Current ratio value of 1.79, FRO is doing good in the industry, outperforming 70.83% of the companies in the same industry.
FRO has a Quick ratio of 1.79. This is in the better half of the industry: FRO outperforms 74.07% of its industry peers.

Growth Assessment of NYSE:FRO

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:FRO scores a 9 out of 10:

The Earnings Per Share has grown by an impressive 470.91% over the past year.
FRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 76.46% yearly.
FRO shows a strong growth in Revenue. In the last year, the Revenue has grown by 72.17%.
FRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.22% yearly.
FRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.02% yearly.
Based on estimates for the next years, FRO will show a very strong growth in Revenue. The Revenue will grow by 27.61% on average per year.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of FRO for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.